diff --git a/Enyim.Caching/Enyim.Caching.csproj b/Enyim.Caching/Enyim.Caching.csproj
index 57b7451a..995e6a16 100755
--- a/Enyim.Caching/Enyim.Caching.csproj
+++ b/Enyim.Caching/Enyim.Caching.csproj
@@ -291,6 +291,7 @@
     </Compile>
     <Compile Include="Memcached\Transcoders\CacheItem.cs">
     </Compile>
+    <Compile Include="Memcached\Transcoders\CompressingTranscoder.cs" />
     <Compile Include="Memcached\Transcoders\DataContractTranscoder.cs" />
     <Compile Include="Memcached\Transcoders\DefaultTranscoder.cs">
     </Compile>
diff --git a/Enyim.Caching/Memcached/Transcoders/CompressingTranscoder.cs b/Enyim.Caching/Memcached/Transcoders/CompressingTranscoder.cs
new file mode 100644
index 00000000..ca1c2b28
--- /dev/null
+++ b/Enyim.Caching/Memcached/Transcoders/CompressingTranscoder.cs
@@ -0,0 +1,36 @@
+using System;
+using System.IO;
+using System.IO.Compression;
+using System.Runtime.Serialization;
+
+namespace Enyim.Caching.Memcached.Transcoders
+{
+    public class CompressingTranscoder : DefaultTranscoder
+    {
+        protected override object DeserializeObject(ArraySegment<byte> value)
+        {
+            var ds = new NetDataContractSerializer();
+
+            using (var ms = new MemoryStream(value.Array, value.Offset, value.Count))
+            {
+                using (var gs = new GZipStream(ms, CompressionMode.Decompress))
+                {
+                    return ds.Deserialize(gs);
+                }
+            }
+        }
+
+        protected override ArraySegment<byte> SerializeObject(object value)
+        {
+            using (var ms = new MemoryStream())
+            {
+                using (var gs = new GZipStream(ms, CompressionMode.Compress, true))
+                {
+                    new NetDataContractSerializer().Serialize(gs, value);
+                }
+
+                return new ArraySegment<byte>(ms.GetBuffer(), 0, (int) ms.Length);
+            }
+        }
+    }
+}